Policy WORDING Mobile Business Assets
Mobile Business Assets / insurance PolicY CONTENTS IIntroduction to this policy 2 Damage to insured property 2 Optional policy extensions 2 Exclusions 3 Basis of settlement 6 Managing your claim 7 General conditions 9 Definitions 11 PAGE 1
Mobile Business Assets insurance policy Welcome to NZI. Thank you for selecting us as your insurer. This is your Mobile Business Assets Policy document. It will tell you what you are insured for and what you are not insured for, as well as any obligations that you or we must abide by to ensure an enforceable policy. This policy document is a legal contract so please read it thoroughly and keep it in a safe place. If you need help with understanding your policy document, please contact your insurance broker. INTRODUCTION TO THIS POLICY You agree to pay us the premium described in the schedule and comply with this policy. In exchange, we agree to insure you as set out in this policy. POLICY CONTRACT INTERPRETING THIS POLICY This policy consists of the following parts: 1. your application for insurance, and any oral or written supporting statements or documents supplied by you, and 2. this policy wording (including any endorsements or warranties), and 3. the schedule. Certain words in this policy have a specific meaning. These words appear in bold and you will find the meaning listed in the Definitions section at the end of this policy. The definitions apply to the plural and any derivatives of the bolded words. You will also find examples and comments to make parts of this policy easier to understand. These examples and comments, which appear in italics, do not affect or limit the meaning of the section they refer to. The headings in this policy are for reference only and do not form part of it. They are not to be used when interpreting the policy. DAMAGE TO INSURED PROPERTY You are insured for accidental loss to insured property, occurring anywhere in New Zealand. OPTIONAL POLICY EXTENSIONS This extension only applies where specified in the schedule. A. NATURAL DISASTER COVER You are insured for natural disaster damage to items of insured property, during the period of insurance. Exclusion Part I does not apply to this extension. PAGE 2
EXCLUSIONS A. TYPES OF PROPERTY This policy does not insure: NOT COVERED 1. any insured property during: 1.1 demolition, or 1.2 installation, construction or erection, or 1.3 testing following any of 1.1 or 1.2 above. 2. money, jewellery, precious stones, furs, precious metals or bullions. 3. any of the following: 3.1 motor vehicles, 3.2 other mechanically or electrically propelled vehicles (including railway locomotives and rolling stock), 3.3 watercraft of any kind, 3.4 aircraft of any kind, 3.5 accessories in or on any of the vehicles or craft in 3.1 to 3.4 above, 3.6 any living creature. B. LOSSES NOT COVERED This policy does not insure: 1. any of the following types of damage to insured property: 1.1 slowly developing deformation or distortion, 1.2 marring or scratching, 1.3 gradual deterioration, 1.4 rot or mildew, 1.5 explosion, rupture, bursting, cracking, leakage or collapse of any: (i) pipes, or (ii) economisers. 2. loss immediately preceded by any of the following: 2.1 interruption of the supply of water, gas, electricity, or any other fuel, 2.2 total or partial stoppage of work, or interruption or cessation of any process, 2.3 a change in artificially controlled temperature or atmosphere. 3. loss caused by any of the following: 3.1 action of micro-organisms, vermin or pests, 3.2 corrosion (caused only by atmospheric conditions), action of light, or inherent nature of the property, 3.3 wear and tear, 3.4 fumes, gas, dust, smoke, soot, 3.5 exposure to weather conditions if the insured property is not designed to be left in the open (unless reasonable precautions have been taken to protect the property from those conditions), 3.6 erosion, 3.7 unexplained disappearances and unexplained shortages, 3.8 any fraudulent scheme or device, or false pretence practised on you or any other person, 3.9 theft or fraud by you or an employee of yours, 3.10 maintenance of insured property, 3.11 atmospheric moisture or change in temperature, 3.12 a latent (existing but not apparent) defect. 4. Any of the following events: 4.1 loss from an unsecured and unattended vehicle, 4.2 cracking or breakage of glass, or any other fragile or brittle substances. These exclusions only apply to the insured property first affected. They do not apply to any resultant accidental loss to other parts of the insured property. PAGE 3
C. CONFISCATION This policy does not insure loss, liability, prosecution or expense of any type in connection with confiscation, nationalisation, requisition or destruction of, or damage to property by order of government, public or local authority (unless the order is given to control any accidental loss that is covered by this policy). D. CONSEQUENTIAL LOSS This policy does not insure any kind of consequential loss (e.g. financial loss that occurs as a result of the loss of insured property), including the following: 1. penalties, or 2. loss of use of any property, or 3. delays, or 4. loss of market. E. COSTS NOT INSURED This policy does not insure any of the following costs: F. DAMAGE TO MACHINERY 1. repairing or replacing faulty materials, 2. fixing faulty workmanship, 3. fixing any work performed to a faulty: 3.1 design plan, or 3.2 design specification, or 4. altering or modifying any part of any refrigeration or air conditioning plant to enable the plant to operate with a more ozone friendly refrigerant, 5. alterations, additions, improvements, overhauls or maintenance of any insured property, 6. provisional repairs unless they: 6.1 are part of final repairs covered under this policy, and 6.2 do not increase the total repair cost, 7. extra charges incurred for overtime, 8. work on public holidays, 9. express freight or air freight, 10. replacing expendable or replaceable parts, including (but not limited to): 10.1 bulbs, valves, electronic tubes, fuses, 10.2 belts, chains, 10.3 batteries, tapes, ribbons, cards. This exclusion does not apply to any resultant loss arising from the above. BOILER OR PRESSURE VESSELS 1. Machinery This policy does not insure any mechanical or electrical breakdown, derangement or failure of any machine. This exclusion does not apply to: (a) any damage originating completely outside the machine that then results in the mechanical or electrical breakdown, derangement or failure of the machine. However, this proviso does not apply to damage originating from any: (i) error in: setting, programming or operating the machine, or (ii) object (including part of the machine) being drawn into the machine, or (iii) failure to service or maintain the machine correctly, and (b) accidental loss: (i) caused by fire or explosion to other separately identifiable parts of the machine, or (ii) to other separate insured property, that occurs as a result of mechanical or electrical breakdown, derangement or failure of the machine. PAGE 4
2. Boilers or Pressure Vessels This policy does not insure the cost of repairing or replacing any part of a boiler or pressure vessel that suffers loss through internal failure or breakdown, including: 2.1 collapse or overheating, or 2.2 cracking or leaking, or 2.3 the generation of fluid pressure or vacuum (but not pressure caused by chemical explosion), or 2.4 explosion, overheating, rupture or bursting, of the boiler or pressure vessel. This exclusion does not apply to accidental loss: (a) caused by fire or explosion to other separately identifiable parts of the boiler or pressure vessel, or (b) to other separate insured property, that occurs as a result of the boiler or pressure vessel failure or breakdown. g. electronic data and programs This policy excludes loss of or damage to electronic data from any cause whatsoever including, but not limited to, a computer virus. This includes loss of use, reduction in functionality or any other associated loss or expense in connection with electronic data. However, this exclusion does not apply to physical damage to other insured property that results from that loss of or damage to electronic data, and which is not otherwise excluded. H. Infectious diseases This policy does not insure loss, damage or interruption in connection with a Notifiable Infectious Disease under the Health Act 1956. I. NATURAL DISASTER This policy does not insure loss, liability, prosecution or expense of any type in connection with earthquake, subterranean fire, volcanic eruption, tsunami, geothermal activity, or hydrothermal activity. J. NUCLEAR This policy does not insure any loss, liability, prosecution or expense of any type in connection with: 1. ionising radiation or contamination by radioactivity from: (a) any nuclear fuel, or (b) any nuclear waste from the combustion or fission of nuclear fuel. 2. nuclear weapons material. K. PRODUCTION PROCESSES This policy does not insure loss of insured property undergoing any production process, unless the loss is caused by the abnormal operation of that process. L. SEEPAGE, POLLUTION AND CONTAMINATION This policy does not insure loss, liability, prosecution or expense of any type in connection with seepage, pollution or contamination. M. TERRORISM This policy does not insure any loss, liability, prosecution or expense of any type in connection with an act of terrorism, including in connection with controlling, preventing, suppressing, retaliating against, or responding to an act of terrorism. n. WAR This policy does not insure any loss, liability, prosecution or expense of any type in connection with any of the following, including controlling, preventing or suppressing any of the following: war, invasion, act of foreign enemy, hostilities or warlike operations (whether war is declared or not), civil war, mutiny, rebellion, revolution, civil commotion assuming the proportions of or amounting to an uprising, insurrection, military or usurped power. PAGE 5
BASIS OF SETTLEMENT A. METHOD OF INDEMNITY We will indemnify you by whichever of the following options we choose. We will: 1. pay the cost of repairs to restore the insured property as near as possible to the condition it was in immediately prior to the loss, or 2. replace the insured property with property of similar condition, or 3. pay an amount equal to the indemnity value of the insured property. However, if the insured property is under two years of age we will reinstate the property provided that you supply us with sufficient evidence of the item s age. B. MAXIMUM AMOUNT PAYABLE The most we will pay: 1. for any one item is the specific sum insured shown in the schedule for that item, and 2. for all items within a category is the total sum insured shown in the schedule for that particular category, during an annual period unless a different amount is shown in this policy wording. C. EXCESS The excess shown in the schedule will be deducted from the amount of the loss for each event. Where your claim includes theft or burglary of portable computing device(s) or video data projector(s), the excess to be applied to the total claim is: 1. $1,000 for each portable computing device and each video data projector, or 2. the specific burglary or theft excess shown in the schedule, whichever is the higher. D. REINSTATEMENT OF THE SUM INSURED After we have paid a claim under this policy, we will reinstate your sum insured. We may ask you to pay an additional premium for this. If we do, you must pay the additional premium. E. SUB LIMITS The most we will pay under an optional policy extension is: 1. the amount specified in this policy wording, or 2. the amount specified in the schedule, whichever is the higher. PAGE 6
MANAGING YOUR CLAIM A. YOUR OBLIGATIONS 1. Advise us If you become aware of any situation that is likely to give rise to a claim, you must contact us immediately. 2. Minimise the Loss You must take all reasonable steps to minimise the claim and avoid any further loss or liability arising. 3. Notify the Police You must immediately lay a complaint with the Police if you suspect burglary, theft, arson or intentional damage has occurred. 4. Provide Full Information When you make a claim you consent to your personal information in connection with the claim being: 4.1 disclosed to us, and 4.2 transferred to the Insurance Claims Register Limited. You must: (a) give us free access to examine and assess the claim, and (b) send any relevant correspondence or documents to us, and (c) complete a claim form or statutory declaration to confirm the claim if we request it, and (d) provide any other information, proof of ownership or assistance that we may require at any time. 5. Be Truthful If your claim is dishonest or fraudulent in any way, we may: 5.1 decline your claim either in whole or in part, or 5.2 declare this policy or all policies you have with us to be unenforceable from the date of the dishonest or fraudulent act. This is at our sole discretion. 6. Do Not Admit Liability You must not: 6.1 admit you are liable, or 6.2 do or say anything that may prejudice our ability to defend the claim against you or take recovery action in your name. 7. Do Not Dispose of Property You must not dispose of any property involved in your claim until we have given you permission to do this. 8. Incurring Costs All costs claimed for under this policy must be necessarily and reasonably incurred. You are not authorised to start any repairs without our permission unless the repairs are necessary to prevent further loss or liability. PAGE 7
B. MANAGING YOUR CLAIM 1. Branded Stock If any salvage is branded goods or merchandise, we will not dispose of these items by sale unless you agree. If you do not agree, the value of the salvage will be deducted from any claim payment. 2. Subrogation Once we have accepted any part of your claim under this policy, we may assume your legal right of recovery. If we initiate a recovery we will include your excess, and any other uninsured losses suffered by you. Where we do this, you agree to pay your proportional share of the recovery costs, and subsequently the proceeds of the recovery will be shared on the same proportional basis, except that we will reimburse your excess first. You must fully co-operate with any recovery process. If you do not, we may recover from you the amount paid in relation to the claim. 3. Recoveries If any property that we have paid a claim for is later found or recovered, you must tell us immediately and hand it over to us if we request it. We have the right to keep any property that we have paid a claim for under this policy, including any proceeds if it is sold. 4. Reparation If any person is ordered to make reparation to you for loss to any property that we have paid a claim under this policy for, then you must tell us. Any payments received must first reimburse our claims payment up to the amount of any reparation received. PAGE 8
GENERAL CONDITIONS A. HOW WE ADMINISTER THIS POLICY 1. Cancellation and Modification 1.1 By You You may ask us to cancel or modify this policy at any time. We must agree in writing to any modification before it will take effect. 1.2 By Us We may cancel or modify this policy by advising you (or your Broker or Agent) by letter, fax or email. Cancellation or modification will take effect at 4.00pm, on the 30th day after the date of our advice. We will refund the proportion of unused premium paid, calculated from the date of cancellation. If you pay your premium by instalments, you must pay us any unpaid instalments that are due. 2. Other Insurance You must notify us as soon as you know of any other insurance policy that covers you for any of the risks covered under this policy. If you or anyone else who is covered by this policy can claim under any other insurance, we will only pay over and above the limit payable by the other insurances. 3. Interests of Other Parties If we are advised of any party having a financial interest over your insured assets, we may pay part or all of any valid claim proceeds to that party to the extent of their interest. This will form part of our obligations to you under this policy. You consent to us transferring your relevant personal information to that party. 4. Separate Insurance If more than one person or entity is named as Insured in the schedule, then all the parties are insured separately (as though a separate policy had been issued to each person/entity). However, the maximum amount we will pay to all parties is the amount stated in each part of this policy. 5. GST Where GST is recoverable by us under the Goods and Services Tax Act 1985: 5.1 all sums insured exclude GST, and 5.2 all sub limits exclude GST, and 5.3 all excesses include GST, and 5.4 GST will be added, where applicable, to claim payments. 6. Monthly/Quarterly Premiums If you choose to pay the premium monthly or quarterly, then: 6.1 you must use the Deduction Authority we require, and 6.2 this policy is for the initial period of insurance starting on the From date and ending on the To date stated in the schedule. The policy will be renewed for further monthly and quarterly periods of insurance (as indicated in the schedule) by payment of each monthly or quarterly premium due under the Deduction Authority. 7. Premium Adjustments If the premium for this policy has been calculated based on estimated figures, then the premium is only a provisional premium for the annual period. Within 3 months of the expiry of the annual period, you must tell us what the actual figures are. We will re-calculate your actual premium based on the actual figures. The difference between the actual and the provisional premiums will either be payable to us or refunded to you depending on the outcome of the adjustment, but any refund will be limited to a maximum of 50% of the provisional premium. PAGE 9
B. LAWS AND ACTS THAT GOVERN THIS POLICY 1. Acts of Parliament Where this policy refers to any Act of Parliament, it also includes any subordinate legislation made under it, and any subsequent Acts or Regulations. 2. Governing Law and Jurisdiction The law of New Zealand applies to this policy and the New Zealand Courts have exclusive jurisdiction. 3. Insurance Law Reform Acts The exclusions and conditions in this policy are subject to your rights under the Insurance Law Reform Acts 1977 and 1985. C. YOUR OBLIGATIONS 1. Comply With the Policy You (and any other person or entity we cover) must comply with the conditions of this policy at all times. If you fail to comply, we may not pay your claim. 2. Provide Accurate Information You must make sure all statements and representations that are made to us, at any time, either by you or anyone else, are truthful and complete. 3. Reasonable Care You must take reasonable care at all times to avoid circumstances that could result in a claim. Your claim will not be covered if you are reckless or grossly irresponsible. 4. Change in Circumstances You must tell us immediately if there is a material: 4.1 increase in the risk insured, or 4.2 alteration of the risk insured. Once you have told us of the change, we may then cancel or alter the premium and/or terms of this policy. If you fail to notify us about a change in the risk insured, we may: (a) declare this policy unenforceable, or (b) decline any subsequent claim either in whole or in part. These actions will be taken from the date you knew, or ought to have known, of the increase or alteration in the risk insured. Information is material where we would have made different decisions about either: (i) accepting your insurance, or (ii) setting the terms of your insurance, if we had known that information. If in any doubt, notify us anyway. PAGE 10
DEFINITIONS The definitions apply to the plural and any derivatives of the bolded words. For example, the definition of accidental also applies to the words accidentally, accident and accidents. accidental act of terrorism annual period computer virus electronic data event immediately preceded by insured property loss machine Unexpected and unintended by you. Includes any unlawful act, or preparation in respect of action, or threat of action designed to influence or coerce the government de jure or de facto of any nation or any political division thereof, or in pursuit of political, religious, ideological, or similar purposes to intimidate the public or a section of the public of any nation by any person or group(s) of persons whether acting alone or on behalf of or in connection with any organisation(s) or government(s) de jure or de facto, and that: (a) involves violence against one or more persons, or (b) involves damage to property, or (c) endangers life other than that of the person committing the action, or (d) creates a risk to health or safety of the public or a section of the public, or (e) is designed to interfere with or disrupt an electronic system. The period of insurance. However, if: (a) you pay the premium monthly or quarterly, or (b) the period of insurance is for more than 12 months, the annual period is any one 12-month period calculated from the date this policy first started, and consecutively thereafter. A set of corrupting, harmful or otherwise unauthorised instructions or code including a set of maliciously introduced unauthorised instructions or code, programmatic or otherwise, which propagate themselves through a computer system or network of whatsoever nature. This includes but is not limited to Trojan Horses, Worms and Time or Logic Bombs. Facts, concepts and information converted to a form useable for communications interpretation or processing by electronic and electromechanical data processing or electronically controlled equipment. It includes programs, software and other coded instructions for the processing and manipulation of data or the direction and manipulation of such equipment. Any one event or series of events arising from one source or original cause. The event occurring immediately in sequence prior to the loss. If there is a chain of events, this will be the last event occurring immediately prior to the loss. Any tangible item of property that is: (a) specifically listed in the schedule, and (b) owned by you (including joint ownership with others). Physical loss or physical damage occurring during the period of insurance. Any device that: (a) converts and directs motion or energy, or (b) performs any electronic process, including any protective component connected with that device. PAGE 11
money natural disaster damage period of insurance pressure vessel production process reinstate schedule we you Any of the following, where they are associated solely with your business operations: (a) current coin, bank and currency notes, (b) cheques and travellers cheques, (c) bank drafts and money orders, (d) phone cards, (e) unused postage and revenue stamps, (f) credit card vouchers, redeemable vouchers and tokens, (g) franking machine credits, (h) other negotiable instruments. Damage that results directly from: (a) earthquake, subterranean fire, volcanic eruption, tsunami, geothermal activity, hydrothermal activity, or fire caused by any of these, or (b) measures taken under proper authority, following an event listed in (a) to: (i) avoid its spreading, or (ii) reduce its consequences. The period shown in the schedule, that specifies the start and end dates of this insurance contract. The parts of any insured property or vessel that during ordinary use are subjected to either generated fluid pressure or vacuum, including: (a) all integral parts, and (b) controls, and (c) systems (other than systems forming part of a building or structure). Any process of producing, making, treating or servicing goods. (a) Where property is destroyed: Replacement by equivalent plant, or (b) Where property is damaged but not destroyed: Restoration of the damaged part of the property to a condition that is substantially the same as, but not better nor more extensive than, its condition when new. The latest version of the Schedule we issued to you for this policy. NZI, a business division of IAG New Zealand Limited. We may also use the words us, our or company to describe NZI. The person(s) or entity named in the schedule as Insured. We may also use the word insured to describe you. PAGE 12
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NZI is a business division of IAG New Zealand Limited, a wholly owned subsidiary of Insurance Australia Group, Australasia s largest general insurer. Established in 1859, it is today one of the country s largest and longest-serving fire and general insurance brands, protecting tens of thousands of New Zealanders every year. Through our broad range of commercial, personal, marine, professional risks and rural insurance products, we pride ourselves on helping people to achieve the best protection for their assets. We partner with a network of skilled and experienced brokers and other insurance intermediaries who distribute our products. We pay remuneration to our brokers and intermediaries when they issue our policies, and when these policies are renewed or varied. To find out more about the advantages of choosing NZI, talk to your broker or visit nzi.co.nz. Printed using vegetable based mineral oil free inks on paper from an environmentally certified and responsibly managed forest and mill. nzi.co.nz form no: NZ5058/5 05/13 wording no. ARC0107 issued: May 2013